African startups raised a total of $138 million in September 2024, encompassing equity, debt, and grants, according to a report by Africa: The Big Deal. While this amount falls slightly below the average of $159 million per month recorded over the past year, the number of startups securing significant investments showed a marked increase.
A total of 61 startups raised over $100,000 in funding during the month, up from an average of 42 startups per month over the last year. The ventures spanned 12 countries, with 90% of the funds going to the Big Four: Egypt, South Africa, Nigeria, and Kenya, along with Ghana. Other countries represented in the report include Morocco, Algeria, Tunisia, Côte d’Ivoire, Tanzania, Uganda, and Rwanda.
Fintech Startups Lead the Way
Fintech startups continue to dominate the African startup ecosystem, receiving the majority of the funding. Among the top fundraisers, three fintech ventures secured investments exceeding $20 million. Egypt-based fintech company FlapKap stood out by raising the largest deal of the month, securing $34 million in pre-Series A funding. This round combined both debt and equity, further strengthening FlapKap’s position in the fintech sector.
Another Egyptian fintech, Paymob, raised $22 million as part of an extension to its Series B round. The company has reported profitability in its home market, showcasing the growing success of Egypt’s fintech scene.
In Ghana, fintech company Fido raised $20 million in Series B equity funding, following a $10 million debt deal announced in August. Fido’s focus on providing accessible financial services to underserved communities has attracted strong investor interest, further contributing to Ghana’s growing fintech sector.
Acquisitions and Exits
September also saw notable acquisition activity within Africa’s startup ecosystem. South African AI financial reporting platform Syft was acquired by global accounting software giant Xero for $70 million, marking the largest exit of the month. This acquisition underscores the global appeal of African tech companies, particularly in the financial and AI sectors.
In Nigeria, fintech company Risevest made headlines by acquiring Kenya’s Hisa, signaling its intention to expand into the Kenyan market. This acquisition reflects the increasing focus on cross-border expansion and collaboration within Africa’s fintech industry.
A Dynamic Ecosystem Amidst Challenges
Despite the overall increase in investment deals, some challenges remain, particularly for Nigerian startups. While the continent’s fintech sector continues to attract large-scale investments, Nigerian startups have struggled to secure major deals in 2024. Aside from Moove’s $100 million Series B round and a $10 million debt deal for its expansion into India, no Nigerian startup has landed a significant deal this year.
In contrast, Kenya has emerged as the top destination for startup funding in Africa. In 2023, Kenyan startups attracted approximately $800 million in investment, while Nigerian startups secured $410 million. The trend continued into the first half of 2024, with Kenyan startups raising $244 million, representing 32% of the total $780 million secured by African startups.
